First, though, let's consider Nvidia's recent earnings report. The company, as mentioned, beat both earnings per share (EPS) and revenue expectations in the fiscal 2025 third quarter. It announced diluted EPS of 81 cents versus estimates of 75 cents and record revenue of more than $35 billion versus estimates of about $33 billion.

With Nvidia’s generally upbeat quarterly third-quarter earnings report now in the books, investors are gauging the company’s fourth-quarter outlook. In its third-quarter review last week, Nvidia also provided fourth-quarter guidance of $37.

The challenge for Nvidia now is living up to the market’s incredibly high expectations for future earnings–Wall Street expects 54% revenue growth in 2025.

By now, Nvidia's (NASDAQ: NVDA) business has been booming for so long that it's getting boring. As of the time of writing, shares are down by around 3% despite better-than-expected third-quarter earnings and a buoyant market for artificial intelligence (AI) hardware.